NIIT Tech net up 34%, on $75 mn of new orders

NEW DELHI: Mid cap IT firm NIIT Technologies on Wednesday reported a 34% rise in its quarterly net profit backed by forex gains and cash flows from new clients such as Morris Communications and Eurostar, it bagged last year.

The Delhi based company gained Rs 33 crore, due to rupee's depreciation, to report a topline of Rs 433 crore, up 44% for the December quarter, from the same period last year.

Bottomline for the company increased to Rs 64 crore, up 34% from last year. "The year 2012 will remain turbulent as US enters an election year and European nations get downgraded. But we have a strong pipeline of about $245 million worth of orders to sustain us through the year," said Arvind Thakur, CEO NIIT Technologies. NIIT Tech shares climbed 3% to Rs 212 on the Bombay stock exchange on Wednesday.

Travel and transport vertical contributes about 38% to NIIT's sales, while financial services contributes about 36%. During the quarter, the company received repeat business from existing clients, which led to $75 million of fresh order intake. "The industry is seeing a slowdown in the banking sector but insurance remains strong," Thakur added.

"Robust traction in the travel and transport segment were the prime contributors to the growth this quarter," Thakur added.

The company added four new customers during the quarter, including two customers in the BFSI (banking, financial services and insurance) space and one each in the travel and transport and manufacturing segments. During the quarter, the company successfully commissioned the Rs 229 crore Border Security Force 'Intranet Prahari' project.

The company is now looking at execution of a Crime and Criminal Tracking Network Systems (CCTNS) security project, for which it has secured orders from two states in the country. NIIT Technologies made a net addition of of 245 employees during the quarter, taking its total headcount to 6,978.